If every position in a portfolio is doubled in size, the risk contribution of the original portion of the portfolio, as measured by VaR, will
A) Remain the same as before.
B) Double.
C) Halve.
D) More than double.

Question

If every position in a portfolio is doubled in size, the risk contribution of the original portion of the portfolio, as measured by VaR, will 
A) Remain the same as before.
B) Double.
C) Halve.
D) More than double.

Quizplus · Accepted Answer

Doubling the size of every position in a portfolio will double the risk contribution of the original portion of the portfolio, as measured by VaR.

If Every Position in a Portfolio Is Doubled in Size